http://en.wikipedia.org/wiki/ECMAScript_for_XML
Brendan Eich was quoted as saying something along the lines of "E4X is crazyland". Parsing it is hard as hell to do right. Think of all the tooling that's out there for JavaScript right now that will either a.) not support JSX code or b.) bloat up beyond belief as it takes into account the suddenly absurd requirements necessary to deal with a similar-but-not-quite-XML-or-even-HTML-for-that-matter syntax. Oh, you want to lint that JavaScript? Bless your heart! You want to add syntax highlighting? Love will find a way. You want to use other static analysis tools, sweet.js macros, or anything else non-trivial? How cute!
So essentially, it's a great way for Facebook to push React.js without making React.js a standard.